General Studies · Factoring Services
Which of the following statements is FALSE regarding factoring?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The factor often provides sales-ledger management and debt-collection services
- 2A major advantage is that factoring strengthens liquidity without taking traditional debt
- 3Factoring provides immediate liquidity to the seller against receivables
- 4Under recourse factoring, the factor bears the credit risk upon debtor default✓
Correct answer
Under recourse factoring, the factor bears the credit risk upon debtor default
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